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Bank Sign-Up Offers in New Zealand: What to Check Before You Switch

Updated

Some New Zealand banks pay cash incentives (cashback) to borrowers, and the terms are worth reading if you’re switching anyway.

Quick answer

Bank sign-up offers can change and come with terms and conditions, so the bank's current offer on its website is the reference.

NZ Bank Sign-Up Offers: Where to Look

Important note: Bank promotions can change, so verify directly on the bank’s website before making any decisions.

Whether a bank has a sign-up offer, and its amount and conditions, changes over time, so check each bank’s own offers page.

Where to find current offers:

  • asb.co.nz/switch
  • anz.co.nz
  • kiwibank.co.nz

How to Legitimately Claim a Sign-Up Bonus

  1. Verify the current offer on the bank’s website — not third-party sites which may be outdated
  2. Check eligibility: offers may be limited to new customers, and each bank sets its own rule on what counts as new, so check the offer’s terms
  3. Screenshot or save the offer terms before applying — these can change even after you’ve applied
  4. Meet all conditions by the specified deadline — set calendar reminders
  5. Check your account for the credited bonus by the stated date
  6. Contact the bank if the bonus doesn’t appear — have your terms documentation ready

Tax on Bank Sign-Up Bonuses

Whether a bank sign-up cash bonus is taxable depends on what kind of incentive it is. Inland Revenue consulted on guidance about cash incentive (cashback) payments a bank pays to a borrower who is a cash basis person under the financial arrangements rules (PUB00504). The guidance covers when such a payment is not taxable and when it is taxable, and the time it must be accounted for.

Everyday-account sign-up bonuses (the kind covered in this guide) are a different product and aren’t addressed by that same guidance:

  • The tax treatment depends on the type of payment, so check the offer’s terms and Inland Revenue’s guidance rather than assuming a fixed rule

Keeping a record of any bonus you receive makes it easier to check later whether it is taxable. Inland Revenue’s PUB00504 consultation explains when a bank cash incentive is not taxable and when it is, so the answer depends on the payment.

Is Bank-Hopping Worth It?

Whether it is worth it depends on the offer’s value, its conditions and the effort of switching.

Factor NZ reality
Bonus value Varies by bank and offer
Time to switch Moving your salary and direct debits takes time
Conditions Each offer sets its own conditions in its terms, such as spending within a set period
Frequency Offers may be limited to new customers, with each bank setting its own rule on who counts as new
Switching cost Time and inconvenience of updating all direct debits

Conclusion: A sign-up offer is one factor to weigh against the rates, service and features of the bank you are moving to, and the admin of switching and, for some offers, switching back later.

Tips for Maximising Sign-Up Bonuses

  • Compare the ongoing rate and fees as well as the offer, since an offer is usually one-off
  • Credit card offers: credit cards can carry their own sign-up offers. See credit cards NZ compared
  • Check account and credit card offers separately, since each offer has its own terms
  • Don’t open an account just for a bonus if the ongoing banking experience or rates are worse than what you have

Common Mistakes When Claiming Bonuses

  • Missing the transaction deadline: offers can have a deadline for meeting the conditions, so note the date in the terms
  • Not setting up the required direct debit — read the conditions carefully
  • Opening the wrong account type: some offers apply only to a particular product, so check which one the terms name
  • Already being a customer: if you have held an account with the bank before, the offer terms may rule you out
  • Not checking the bonus has been credited — follow up with the bank if it doesn’t appear by the stated date

Next Steps